Document 6bGw3Gr2KbBQJnr3Kn8M93JnR

24 THE WALL-STREET JOURNAL, Wednc.day, February 8, 39I PLAINTIFFS Antitrust Fines Rise to $1,924,500 n EXHIBIT In 20, Electrical Equipment Cases 9 By o Wall St One Individual Still to. Be $2,000, R. W. Ayres. Jr. manager in GE's low voltage switchgear department. $2,000; W, T. NEW YORKDelrin, a plastic Sentenced; GE Draws Pyle, sales manager of the switchgear devices ago, and indtcat< section, assembled switchgear and devices de annual volume c Heaviest Levy, -$437,500 partment of Westinghouse, $1,500; Frank E. DuPont has ( Stehlik, general manager of GE's low voltage 1960. but mark* switchgear department, $2,500; and J. T. industry put the By Wall Strisst Journal stnff Reporter Thompson, sales manager of Westinghouse's $15 million. PHILADELPHIA--U.S. .District Judge J. assembled switchgear and devices department. Cullen Ganey imposed additional fines of $993, {($2,000. * ` * . Effective Ma: Hill be 65 cents 000 in electrical equipment price fixing cases Sentencing of William H. Schiek. manager DuPont said. C as sentencing was practically finished. Only of power circuit breaker sales in GE's high price cut as a one individual, unable to appear in court yes voltage switchgear department, was postponed rate of growth . terday, is still to be sentenced. Jn_two_days_of_sentencing_in_theGovem- ment's largest criminal antitrust action. Judge when Mr. Schiek's lawyer pleaded ill health on behalf of his client, who did not appear before the court. The new pritime will .cost 1 basis, DuPont Ganey Imposed fines of $1,924,500 on 29 manu Quicker, Less Dramatic Sessions costlier than st facturers and 44 officials of companies in 20 cases. - Yesterday's sentencing was briefer and less dramatic than Monday's five-hour session, pound basis, it teriala on a w< ' Total corporate fines were $1,787,000, with ev.en though 14 of the 20 cases were handled. much cheaper t General Electric Co. topping the list with fines Less than a dozen individuals were up for sen which it compe- of $437,500 in 19 cases, followed by $372,500 for tencing yesterday, compared with three dozen Delrin also h Westinghouse Electric Corp., also in 19 cases. Monday. Most cases yesterday were in the another plastic, SeVen executives were fined and ordered to jail for one month, beginning next Monday. The jail sentences were handed down Monday. Twenty three officials were given one-month suspended sentences, plus probation for five years and fines. Of these, five were sentenced yesterday. .. Never before had such a mass of criminal antitrust litigation been disposed of without trials, according to Government attorneys. Sentencing followed the entry of final pleas of guilty and no defense by all defendants in December and January. The cases arose from Indictments returned Government's "less serious" class. There were no jail terms, other than the suspended sen tences, handed down yesterday. tthere were a few touches of humor, includ ing o*e bobble by Judge Ganey that produced a round of laughter. This occurred just after the Government finished making recommenda tions for sentencing in a case involving power capacitors. It was then time for the defend ants' attorneys to present arguments for miti gation of sentences. Instead, Judge Ganey launched Into sentencing, announcing CornellDubiUer Corp. was fined $20,000. pound brings price of 98 ce: observers sugg pound probably before the end Delrin continue Delrin is a is resistant to 1 heit. Since it w its growth has used mostly as doorknobs, appl automotive par and pipe. Also, by four Federal grand juries, beginning Feb Approaching the bench, Cornell-Dubiiier at housings for Ch ruary 16, 1960. Each indictment covered a torney Jacob Imberman. of New York gestured bile, at a weigh separate group of products, involving an ag to indicate he had something to say. Judge also being use- gregate anmlal-sales volume of over $1.7 billion Ganey quickly apologized, and added, with & rods because li by Government calculation. :. At the conclusion of sentencing, Baddia J. smile: "I had this all worked out so well," re ferring to the list of fines he was prepared to Investment of $ Rashid, chief of the. antitrust division's trial sectkeu told the. court he felt the Government cases would foeter free competition, in keeping with the intent-of the 8herman Antitrust Act Hb said, "Economic freedom in this country should be no less an ideal than political freedom." ' . Corporation Fines read off. Mr. Imberman proceeded with a few arguments for his client, but the sentence was not changed. .. Judge Ganey created a stir when he sen tenced L. W. Long of AlHs-Chalmers to a.sus pended one year term. When the one year was called to Judge Gane^'s attention, he changed the suspended sentence'to one month. DuPont said ment of Delrin i W. Va,, to mak known as polyo: formaldehyde. I be machined &r duction rates. I size of the Pai Iieved capable Other than G.E. and. Westinghouse, total fines received by corporations, with number of . Most individuals appearing yesterday were men who held positions lower that the major!- million pounds > DuPont also cases in parentheses, were: ty of-those sentenced~Mo7Tdayr~Jgdgg~Ganey AltU-Chalmers Manufacturing Co. (9), $127, took considerable note of this, and it showed 800: McGraw-Edison Co. (7),, $95,000 Jj-T-E Cir- up in the generally lighter sentences yesterday. cttft Breaker Co. (9), $92,500; Square D Co. (2), Shows Lack of Sympathy .' $75,000: Federal'Pacific Electric Co. (4), $65 Judge Ganey again indicated his lack of 000; H. K. Porter Co.f Inc. (4), $50,000; Cutler- sympathy for company officials, even if they Hammer, Inc. (2), $45,000; Ohio Brass'Co. (4), were taking brders from superiors, as claimed. $45,000; Allen-Bradley Co. (l), *40,000; Attorney Henry :T. Reath argiled his client, Moloney Electric Co. (3), $35,000; Southern M. A. DeFerranti of GE had been, from time States Equipment Cfcfp. (2). $30,000: Wagner to time, under orders of superiors. Mr. DeFer Electric Co. (3), $27,000; C!ar|c Controller Co. ranti also made repeated attempts to cut prices (1), $25,000; Josfyn Manufacturing k Supply in his department, Mr. Reath said. rwn.nnWiu* wuc-tH* fr>m. < 14 ; K*a KtViHv " *--**** w , . ... "cases In parentheses', were: '. Allis-Chalmers Manufacturing Co. (9), $127.* 600: McGraw-Edison Co. (7),, $95,000; J-T-E Cir ty of those sentenced Monday. Juage Ganey took considerable note of this, and it showed up In the generally lighter sentences yesterday. cuit Breaker Co. (9), $92,500; Square D Co. (2), Shows Lack of Sympathy $75,000; Federal Pacific Electric Co. (4), $65,* Judge Ganey agxin indicated his lack of 000; H. K. Porter Co., Inc. (4), $50,000; Cutler- sympathy for company officials, even If they Hammer, Inc. (2), $45,000; Ohio Brass Co. (4), were taking Orders from superiors, as claimed. $45,000; Allen-Bradley Co. (l), $40,000; Attorney Henry T. Reath argued his client, Moloney Electric Co. (3), $35,000; Southern M. A. DeFerranti of GE had been, from time States Equipment Corp., (2), $30,000; Wagner to time, under orders of superiors. Mr. DeFer- Electric Co. (S), $27,000; Clark Controller Co. ranti also made repeated attempts to cut prices j (1), $25,000; Joslyn Manufacturing ft Supply in his department, Mr. Reath said. j Co. (3), $25,000; Cornell-Dubllier Electric Corp. Judge Ganey said there was something to , (now a subsidiary of Federal Pacific), (1), be said for Mr. DeFerranti'# price cutting at-: '$20,000; Foster Wheeler Corp. (1), $20,000; In- tempts and acknowledged that evidence gersoll-Rand Co. (1), $20,000; showed he acted on orders) "But here again Is C. H.; Wheeler Manufacturing Co. (1), $20. the classical company man," Judge Ganey 000; Worthington Corp. (I), $20,000; X. B. commented. "He balmed his conscience for a Chance Co. (2), $17,500; Sangamo Electric Co. salary of $60,000 a year." (2), $17,500; Lapp Insulator Co., Inc. (2), $15, 000; Schwager-Wood Corp. (I), $15,000; Hub bard & Co. (2), $10,000; Kuhlman Electric Co. (1), $10,000; Carrier Corp. (1), $7,500; and Por celain Insulator Corp. (1), $7,500; Porcelain In sulator Is now a subsidiary of Joslyn Manu facturing. - Mr. Reath said Mr. DeFerranti was one of more than two score GE men who were dis ciplined by the company for price-fixing activlty and that his client felt GE's discipline "was extremely unfair." The discipline amounted to a demotion, with a 30% pay cut. He was gen eral manager of the distribution transformer Officials Fined department. Mr. Reath said Mr. DeFerranti re At yesterday's sentencing, officials given cently resigned from GE, having found another suspended S0-day jail sentences, with fines also job. ahowp, were: K. A. DeFerrantl,^former gen Also referring again to GE's disciplinary eral manager, distribution transformer depart moves against his clients was Philadelphia At ment of.GE, $3,500 fine; Gordon C. Hurtbert, torney Edwin P. Rome. He said Clarence B. manager, distribution transformer department Burke, former general manager of GE's high of Westteghouse, $2,000 fine; Clarence Z. voltage switchgear equipment, was reduced Burke, general manager of GE's high-voltage four levels by the company for price-fixing ac switchgear department, $3,500 fine; L.' W. tivity, with a $30,000 cut in salary. --Long, assistant general manager in Allis- GE issued a statement yesterday on the Chalmer's power equipment division, $1,500 company's relationship with the 17 company fine, and J. W/Stlrling, manager of Westing- officials who were indicted. It denied asser house's power circuit breaker department, tions that conspiratorial acts of company $1,500 fine. Mr.' Long bad received a one- officials were *part of a "supposed corporate month suspended term in another case Mon way of life" at GE. day, along with 18 others. GE Statement The following fines were imposed ,on in dividual defendants: W. R. Swolsh, sales man ager, Pennsylvania transformer division of McGraw-Edison, $3,500; A. R. Waehher, direc tor of transformer sales, line material Indus tries division of McGraw-Edison, $1,500; Joel Watkins, vice president and manager, trans ' GE's statement said: "Although we accept in a constructive spirit justifiable criticism in this antitrust situation, the assertions that it has been either business policy or alleged con formity to a supposed corporate way of life that brought about these violations of the law is not based on tact so far as General Electric former division of Kuhlman Electric, $2,500; is concerned' As the record .well established, Royce C. Crawford, manager of marketing, the actions of these few individuals were not high voltage switchgear department, GE, in conformance with company policy, but a deliberate violation of General Electric direc JOB PINCH ? tive policy and of the expected high standards of our corporate way of life. The acts were wies of non-conformity and of conspiracy. Jobs like shoes, pinch where roa've outFrown them. Sometimes a little adjustment is needed, sometimes a new job or career. 'Either way, Job pinch shows it's time to use Success Factor Analysis. 8ueeess Factor Analysis--pioneered by Bern ard Haldane--Is the sure way to 1 quicken yoor progress, obtain the rirht position, earn higher income and greater recognition--where I .you are or qlsewhere. "To draw inaccurate generalisations based on understandable sympathy fop the mistakes of a few is unfair and insupportable, as it re flects on the thousands of responsible, con scientious employes of the company." On numerous occasions, GE has publicly denounced the price-fixing activities of com-; pany officials. However, this was the first CALL MU 0-15X5* for private exploratory consultation without fee; or \trite for free brochure h'o. t. official reply to assertions made during-the cases that pries fixing conspiracies with com petitors, over the years, had become" a Bernard Haldane Associates - ' Executive Jefc, Ceeawlert 16 East 41st Street . 5*w York IT, N.T. Peatea: CO S-UOff Wash., D.C.t ME V er write ter PHILADELPHIA laterview ' "prayer helps.men to make sound decisions** corporate way of life. Late yesterday, the Government disclosed the seven officials sentenced to 30 days in jail would iserve their terms at the Montgomery County, Pa., jail at Norristown. The U.S. Gov. emment uses the county jail,_paying a daily fee, in many cases where brief terms are to PRODUCTIVE LANDMARKS be served. - Still to be settled in the electrical eases are ,,,.m A,,*Tr,p9 rnrrentlv being negoti- / mem of.GE, *3,500 fine; Gordon C. Hurlbert, temey t^awm f. Home, ne saia u.Afence t,. Manager, distribution transformer department Burke, former general manager of GE's high of W--Uuj1miw. g,000 flg;.v Clarence 2. voltage switchgear equipment, was reduced Burke, general manager of GE's high voltage four levels.by the company for price-fixing ac switchgear department, *3,800 fine; L. W. tivity,-with a *30,000 cut in salary. >rig,-S8istant general -manager in Allis- GE issued a statement yesterday on the Ohalmer's power equipment division, *1,900 company's relationship with the 17 company fine, and vJ#W.*4Stirllng, manager of Westing* officials who were indicted. It denied asser houM'g'ftpMnr. circuit breaker department, tions that conspiratorial acts of company *1,500 fine. Mir;*long `had received a one* officials were *part of a "supposed corporate month suspended term in another case Mon* way of life" at GE. day, along with 18 others. GE Statement The following fines were imposed ,on In* dividual defendants: W. R. Swoish, sales man* ager, Pennsylvania ' transformer division of McGraw*Edison, *3,500: A. R. Waehher, dlrec* ' GE's statement said: "Although we accept In a constructive spirit justifiable criticism In this antitrust situation, the assertions that it has been either business policy or alleged con tor of transformer sales, line material Indus* formity to a supposed corporate way of life tries division of McGraw-Edison, *1,500: Joel that brought about these violations of the law Watkins, vice president and manager, trans is not based on fact so far as General Electric former division of Kuhlman Electric, *2,500; is concerned^ As the record well established, Royce C. Crawford, manager of marketing, the actions of these few Individuals were not high voltage switchgear department, GE, in conformance with company policy, but a deliberate violation of General Electric direc JOB PINCH ? Jobe like shoes, pinch where you've out* crown them. Sometimes a little adjustment is needed, sometimes a new Job or career. Either way, Job pinch shows It's time to use Success Factor Analysis. Suceeas Factor Analysis--pioneered by Bern* ard Haldane--is the sure way to ' quicken your procress, obtain the rlcht position, earn higher Income and greater recognition--where you are or elsewhere. five policy and of the expected high standards of our corporate way of life. The acts were ones of non-conformity and of conspiracy. "To draw inaccurate generalisations based on understandable sympathy for the mistakes of a few is unfair and Insupportable, as it re flects on the thousands of responsible, con scientious employes of the company." On numerous occasions, GE has publicly denounced the price-fixing activities of com pany officials. However, this was the first CALL MU 9-1515* official reply to assertions made during the for private exploratory consultation without fee; or write for free brochure Ko. f. cases that price fixing conspiracies with com petitors, over the years, had become' a Bernard Haldane Associates - Execstire JekCesueler* t East 41st Street New York 17, N.Y. Boston: CO *1105 Wash., D.C.i MB S-S747 or write for PHILADELPHIA interview "Prayer helps men to make sound decisions** corporate way of life. Late yesterday, the Government disclosed the seven officials sentenced to 30 days in Jail would -serve their terms at the Montgomery County, Pa., jail at Norristown. The U.S. Gov ernment uses the county jail, paying a daily fee, in many cases where brief terms are to PRODUCTIVE LANDMARKS be served. Still to be settled in the electrical cases are civil consent decrees, currently being negoti ated between trustbusters and the companies. These decrees, in effect, will enjoin the com panies from price fixing, bid rigging or other non-competitive acts as charged in the crimi nal Indictments. ' The companies face the possibility of po JtjVTHE RUST ENGINEERING CO.' tentially costly civil damage suits from cus tomers. Ordinarily, Federal Government agen cies can sue for single damages, while other customers can sue for triple damages. Often DAY & ZIMMERMANN the task of proving the extent of any alleged damages is complex and discourages custom INeOftPORATCO ers who might want to sue. antitrust attorneys ENGINEERS said. There have been indications, though, that CONSTRUCTORS CHEMICAL PLANTS some Federal ^agencies and state and other governmental uhlts may sue electrical man ufacturers. ' , inr TOW PHiUOELPHU CMCABO American Optical to Sell Unit GIBBS & HlU, WO. Qownrr,TP*o Emunuto Dmsxm Cowwnmoieaa tiTniTlBSi DtPOTTWH amponuc WORKS pwsw.%w* Wcassow * Ksw T^u X, W.T. SOUTHBRIDGE, Mass.-American Optical Co. has agreed to sell its wholly owned sub sidiary. Hanau Engineering Co., Inc., of Buf falo, N.Y.. to William Getz Corp. of Chicago. The price was not disclosed. Hanau Engineer ing manufacturers and distributes products for the dental trade. '?* /